The impetus to the power sector helped power stocks weather the storm in the post-budget session. The budget has provided a wide range of benefits to both power equipment and power generating companies. The new power projects coming up in the third quarter have been granted the tax holiday for a period of five years. Apart from direct benefits, the power sector is likely to get a big push with the importance being accorded to infrastructure. BSES, after seeing a high of Rs 184 in the post-budget session, closed the day at Rs 173.5 against the pre-budget close of Rs 170. Other power generating companies like Andhra Valley and Tata Power also held on to their pre-budget levels. Among the power equipment manufacturers, Siemens closed Rs 4 higher at Rs 284 against the pre-budget level of Rs 280, while BHEL closed Rs 19 lower at Rs 342 after seeing a high of Rs 383.

Gaining strength: Another sector whose fortunes are determined by infrastructure and housing iscement. The proposal to construct more than 20 lakh dwellings in the current fiscal and construction of national highways would spur demand and help the cement companies recover from the current recession. Excess capacities and low offtake has taken a toll on cement manufacturers. The performance of cement companies has been also hit hard by low price realisation. The proposals announced in the budget would give a breathing space to these companies.

The market leader, ACC zoomed to a high of Rs 1769 before closing the day at Rs 1692 against the pre-budget closing of Rs 1689. Gujarat Ambuja Cements too ended higher at Rs 307 against the previous close of Rs 301. The scrip touched a high of Rs 329. L&T was also in the limelight as the company is engaged in engineering and cement manufacturing. The scrip zoomed to Rs 282 before closing the day at Rs 265.

Bull run to continue: Yashwant Sinha's realistic budget provided enough strength to the competitive Infotech industry. Despite confusions over thedual listing issues in terms of stock options in the form of ADRs and GDRs, these stocks continued their upward rally. However, their movement was checked adequately on account of short covering by local punters. Although sops have been given to the hardware sector in the form of custom duty cuts in components, the stocks lost steam during the last phase of the post budget session.

"Today the infotech industry can be considered as the best hedge for investors," said an analyst at Pranav Securities. Reflecting the volatile nature of movement, Infosys Technologies, which traded with a spread of Rs 100, closed lower at Rs 2,504.30, registering a net gain of 2.62 per cent.

Silverline closed at Rs 124.25 compared to the previous close of Rs 121.40.Satyam, which opened at Rs 540 moved higher to touch a new high of Rs 610.The scrip finally ended the day at Rs 584. CMC hit the circuit limit on the upper side at Rs 241.5 during the day.

Sops to no avail: Steel stocks failed to react positively to the hikein the import duty structure. The main reason that the stocks closed at lower levels was the general disappointment in the market since buyback didnot come through. Both Tisco and Sail being large-cap stocks, the market expected these companies to take advantage of buyback, cut down on large floating stock and perk up earnings per share. TISCO closed at Rs 151 against its pre-budget close of Rs 157.50. SAIL dropped to a low of Rs 11 after touching a high of Rs 13.40. Dealers attributed this sudden spurt to the expectation of an increase in the import duty for steel. This would make import of steel costlier and give an edge to domestic steel companies.

Win some, lose some: It's win some, lose some for paper companies in the finance bill for the year 1998-99. Among the bigger players, Ballarpur Industries and ITC Bhadrachalam have emerged as clear winners with the hike in import duty from 20 per cent to 30 per cent on paper and paper boards. The 10 per cent hike in import duty would provide succour tothese paper companies, reeling under low offtake and prices, coupled with dumping by international majors. Ballarpur's stock responded well on the bourses and closed the day close to the higher end of the ceiling at Rs 34.7 against the previous close of Rs 31.55. However, the public sector giant, Tamil Nadu Newsprint would lose substantially as a result of reduction in customs duty from 10 per cent to 5 per cent on newsprint. It would further widen the gap between the landed cost and domestic newsprint cost. As a result, the company may have to reduce the price further and thereby putting net profit under pressure.